Buy H G Infra Engineering; target of Rs 1749: Anand Rathi

Anand Rathi's research report on H G Infra Engineering

A steady execution pace, continued operating profitability and steady orders make HG Infra’s FY25 results comforting with one-off margins in Q4. This sets the tone for an even better performance ahead. Leverage rose on seasonality and financial prudence but the balance sheet is in shape to effect an even better scale ahead; also, healthier receipts expected in FY26, monetization proceeds from six near-completion assets would help. Proven execution ability, healthy assurance, a broadbased opportunity landscape (on continuing diversification efforts), a well-set balance sheet and an unemotional approach to asset ownership are remarkable.

Outlook

hence, we maintain a Buy with a higher 12-mth TP of Rs1,749 (earlier Rs1781) on rolling forward to FY27.